Victoria’s temporary off the plan stamp duty concession offer.
The Victorian Government has introduced a temporary stamp duty concession for off-the-plan property purchases, effective from October 21, 2024, until October 20, 2025. This measure aims to encourage investment in apartments, townhouses, and units under strata subdivisions, excluding house-and-land packages and completed but unsold properties.
Key Features:
- Eligibility:
- The concession applies to contracts signed during the specified 12-month period, regardless of when the settlement occurs.
- Both local and foreign buyers are eligible, though foreign buyers must still pay the additional foreign purchaser duty on the full property value.
- Calculation:
- Purchasers can deduct construction costs from the total property price when determining the dutiable value. For example, if a townhouse costs $1.2 million and $750,000 is allocated to construction, the dutiable value is reduced to $450,000, potentially saving tens of thousands in stamp duty.
- Property Types:
- Only off-the-plan strata properties such as apartments or townhouses qualify. Freestanding homes and house-and-land packages are excluded.
- No Price or Income Limits:
- Unlike some other incentives, there is no cap on property price or buyer income for this concession.
- Additional Support:
- This initiative can be combined with other concessions like the principal place of residence or first-home buyer exemptions, where applicable.
For more detailed information on the temporary off the plan stamp duty concession, you may consult resources from the State Revenue Office of Victoria or contact our office. We can discuss this further to identify if this suits your circumstances and to determine if this is in the best interest for you.
How to source a property?
When sourcing a property, there are many factors and fundamentals that should be considered before taking advantage of any government incentives. Seeking advice from a property adviser (buyers’ agent) will be the best way to buy the right property for you.
If you’d like some assistance sourcing a brand new or off the plan property, please don’t hesitate contact us.
We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
December 2024
